Wall Street kicks off October with broad rally, boosted by economic cheer

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NEW YORK (Businesshala) – Wall Street shares edged higher on Friday, fueled by positive economic data, progress in the fight against COVID, and Washington’s development on a possible path to infrastructure in a buying mood in the final quarter of 2021. entered. bill.

FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange in New York October 28, 2013. Businesshala/Carlo Allegri

All three major US stock indexes were seen earlier in the session but began to trend higher by late afternoon led by an economically sensitive cyclical.

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The rally gained momentum after the White House announced that US President Joe Biden was becoming more involved in the debate on the infrastructure spending bill on Capitol Hill.

Still, all three indices ended below last Friday’s close, falling between 1.4% and 3.2%, with the S&P 500 and Nasdaq Composite reporting their biggest weekly percentage declines since February.

“There was a massive recovery today. “The market was not settled today on new taxes or tapering,” said David Carter, chief investment officer at Lenox Wealth Advisors in New York.

“There hasn’t been any major news from Washington in a turnaround for the past few weeks, so markets were forced to focus on positive economic data and a new COVID drug.”

Merck & Co. Inc. revealed that a recent study cut the risk of death and hospitalization from its experimental oral drug for COVID-19 by nearly 50%, with its shares jumping 8.4% and the economic downturn. fostered the spirit of reopening.

While Biden signed a stop-gap bill into law to keep the government running until December 3rd, lawmakers only managed to scuttle down the road.

This lack of resolution prompted rating agency Fitch to warn that the ‘AAA’ credit rating of the United States could be at risk.

“Markets do not assume that debt will be reduced or that the debt limit will not be dealt with, but this still adds to the uncertainty which is always a problem for markets,” Carter said.

A host of economic data released on Friday showed increased consumer spending, accelerating factory activity and increased inflation could help the US Federal Reserve shorten its timeline for tightening its monetary policy. Is.

Philadelphia Fed Chairman Patrick Harker reiterated his view expressed in a speech on Wednesday that he believes the central bank should start reducing its asset purchases “soon,” but reiterated that they should be able to reduce their asset purchases next year. Key interest rates were not expected to rise until the end of the year or until early 2023. .

The Dow Jones Industrial Average rose 482.54 points, or 1.43%, to 34,326.46; The S&P 500 rose 49.5 points, or 1.15%, to 4,357.04; And the Nasdaq Composite rose 118.12 points, or 0.82%, to end at 14,566.70.

Of the 11 key sectors in the S&P 500, all ended higher except healthcare stocks.

The sector was weighed down by 11.4% in shares of COVID vaccine maker Moderna Inc in the wake of Merck news.

Economic optimism prompted value stocks to outperform growth, and transport and smallcaps to outperform the broader market.

Advancing issues declined by a 2.17-to-1 ratio on the NYSE; On the Nasdaq, a 1.63-to-1 ratio favored advances.

The S&P 500 posted 10 new 52-week highs and nine new lows; The Nasdaq Composite posted 63 new highs and 136 new lows.

Volume on US exchanges stood at 11.02 billion shares, compared to an average of 10.70 billion over the past 20 trading days.

Reporting by Stephen Culp; Richard Chang. editing by

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